Dani Hernandez has been working in the mortgage business for more than 11 years. In 2006, she started originating loans and moved into underwriting in 2009. By working on both sides of the process, Dani possesses a unique understanding of the mortgage lending process compared to other industry professionals. Dani is currently the head of compliance and underwriting at Newcastle Home Loans.
[Expert Commentary] By continuing to hold funding of the federal government hostage to his demand for a border wall, President Donald Trump has successfully built a (hypothetical) wall to keep borrowers from realizing the American dream of homeownership. Here's how each type of mortgage is being affected by the government shutdown.
[Expert commentary] Is HUD the latest example of the Trump Administration quietly using government agencies, such as the FHA, to discourage immigrants from pursuing the American Dream of homeownership?
Question: I have a borrower who is looking to purchase a new home. They are employed by a large corporation and qualify for the loan using only their W-2 income. However, the borrower has a Schedule E loss on their tax returns from Self-Employment through an S-Corporation. If the borrower qualifies using only their W-2 income, do I need to include the self-employment loss in their debt-to-income ratio? Click for the answer!
In this week's edition of Ask the Underwriter, Dani Hernandez answers a query about student loan cash-out refinances, how they're different from traditional cash-out refinance loans, and how to market the loans to your borrower.
On Wednesday, a federal judge ruled that the protections for Deferred Action for Childhood Arrivals program recipients must stay in place and that the government must resume accepting new applications for the program. This is great news for the Dreamers! But what does it mean for DACA borrowers who are looking to buy a new home this spring? This week, Underwriter Dani Hernandez provides a walk through of the FHA’s guidelines and explains the documentation needed to get your DACA borrowers into a new home using FHA financing.
Can a borrower who is married but living separately from his spouse, who makes the mortgage payments, qualify for a Freddie Mac Home Possible mortgage? Underwriter Dani Hernandez breaks down how to qualify for a Home Possible loan with ownership interest in other properties.
Ask any mortgage professional and they will tell you if you use an FHA loan to buy a new home, you must make a Minimum Required Investment equal to 3.5% of the purchase price or appraised home value (whichever is less). Most of these "experts" will also tell you this means the minimum down payment and cash due from the borrower at closing must be equal to 3.5%, and they will insist your out-of-pocket cost cannot be any less. And this misconception is so widely believed that it caused a bit of panic in my office this week. Read on to find out about how a little loophole helps avoid this problem...